WMATA's $24.26M fare media purchase contract awarded without competition, raising value concerns

Contract Overview

Contract Amount: $24,260,000 ($24.3M)

Contractor: Washington Metropolitan Area Transit Authority

Awarding Agency: Department of Transportation

Start Date: 2012-09-30

End Date: 2015-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $22.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: IGF::OT::IGF WASHINGTON METRO AREA TRANSIT AUTHORITY - FARE MEDIA PURCHASE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $24.3 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY for work described as: IGF::OT::IGF WASHINGTON METRO AREA TRANSIT AUTHORITY - FARE MEDIA PURCHASE Key points: 1. The contract's value proposition is questionable due to the lack of competitive bidding. 2. Limited competition suggests potential for overpayment and reduced price discovery. 3. The contract duration of 1095 days (3 years) warrants scrutiny for flexibility and market alignment. 4. Performance context is limited as this is a delivery order under a larger, unspecified contract. 5. The sector positioning is within transit and ground passenger transportation, a critical public service area. 6. Risk indicators include the sole-source nature and the absence of a clear justification for limited competition.

Value Assessment

Rating: questionable

Benchmarking the value of this $24.26 million fare media purchase is challenging without knowing the specific services or goods procured and the market rates for such items. The absence of competition inherently limits the ability to assess if the price achieved is competitive. Compared to similar contracts for transit advertising or media services, the lack of bidding makes it difficult to determine if WMATA received fair market value. Without a competitive process, there's a higher risk that the pricing may not be optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates 'NOT COMPETED' and a 'sole-source' award type. This implies that only one vendor was considered or approached for this procurement. The lack of competition means there were no other bidders to drive down prices or offer alternative solutions. This significantly limits price discovery and may result in a less favorable outcome for the procuring entity.

Taxpayer Impact: Taxpayers may be overpaying for these services due to the absence of a competitive bidding process. Without multiple offers, the likelihood of securing the best possible price is diminished, potentially leading to inefficient use of public funds.

Public Impact

Transit riders in the Washington Metropolitan Area benefit from the services facilitated by this contract, likely through improved fare collection and media advertising opportunities. The contract supports the operational needs of the Washington Metropolitan Area Transit Authority (WMATA) in managing its fare media systems. The geographic impact is concentrated within the Washington D.C. metropolitan area, serving its public transportation users. Workforce implications are indirect, potentially supporting jobs within WMATA and the awarded contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer money.
The sole-source award limits transparency and accountability in the procurement process.
Absence of clear justification for sole-source award could indicate potential mismanagement or lack of due diligence.
The long contract duration (3 years) without competition may lock the agency into a suboptimal solution.
Limited data on the specific services or goods procured makes a thorough value assessment difficult.

Positive Signals

The contract supports essential public transit operations for a major metropolitan area.
The procurement is managed by the Department of Transportation, suggesting a level of federal oversight.
The contract is a delivery order, implying it might be part of a larger, potentially more structured, framework.

Sector Analysis

The contract falls within the 'Transit and Ground Passenger Transportation' sector, specifically related to fare media. This sector is crucial for urban mobility and economic activity. Spending in this area often involves technology for fare collection, advertising platforms, and related services. Comparable spending benchmarks are difficult to establish without more detail on the specific services, but transit authorities globally invest significantly in fare systems and advertising revenue generation. This contract represents a portion of WMATA's operational budget dedicated to these functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus was not on leveraging small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Washington Metropolitan Area Transit Authority (WMATA) and potentially the Department of Transportation, given its agency. Accountability measures are weakened by the sole-source nature of the award, as competitive pressures are absent. Transparency is limited due to the lack of a competitive bidding process and detailed public justification for the sole-source award. Inspector General jurisdiction would likely extend to WMATA's operations, including this contract, for potential fraud, waste, or abuse.

Related Government Programs

Federal Transit Administration Grants
Metropolitan Planning Organizations
Public Transportation Infrastructure Projects
Transit Advertising Contracts

Risk Flags

Sole-source award without clear justification.
Potential for lack of price competition leading to overpayment.
Lack of transparency in the procurement process.
Absence of defined performance metrics makes accountability difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $24.3 million to WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY. IGF::OT::IGF WASHINGTON METRO AREA TRANSIT AUTHORITY - FARE MEDIA PURCHASE

Who is the contractor on this award?

The obligated recipient is WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2012-09-30. End: 2015-09-30.

What specific fare media services or products were procured under this $24.26 million contract?

The provided data does not specify the exact nature of the 'fare media purchase.' This could encompass a range of items or services, such as the production and distribution of physical fare cards, the development and maintenance of digital fare collection systems, advertising space on transit vehicles or stations, or a combination thereof. Without this specific detail, a precise assessment of value for money or comparison to market rates is significantly hampered. Understanding the scope is crucial for determining if the $24.26 million expenditure was justified and competitive.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and awarded as 'sole-source.' However, it does not include the specific justification or documentation that would typically accompany such an award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without the official justification, it is impossible to assess whether the sole-source designation was appropriate and followed proper procedures, raising concerns about potential lack of due diligence or market exploration.

How does the $24.26 million expenditure compare to historical spending by WMATA on similar fare media services?

The provided data does not offer historical spending figures for WMATA's fare media services, making a direct comparison impossible. To conduct such an analysis, one would need access to WMATA's past procurement records or budget allocations for similar contracts. Understanding historical spending patterns is vital for identifying trends, potential cost increases, or significant deviations that might warrant further investigation, especially in the context of a sole-source award where price discovery is limited.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The available data does not detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These metrics are essential for evaluating the contractor's performance and ensuring that WMATA receives the agreed-upon quality and quantity of services or products. Without defined KPIs and SLAs, it is difficult to objectively measure the success of the contract, hold the vendor accountable, or determine if the $24.26 million investment yielded the expected outcomes.

What is the track record of the contractor awarded this sole-source contract for fare media services?

The provided data does not identify the contractor awarded this sole-source contract, nor does it offer any information regarding their track record. To assess the contractor's reliability and past performance, one would need to identify the specific entity and review their history with government contracts, particularly those related to transit, fare systems, or media services. A contractor's past performance is a critical factor in procurement decisions, especially for sole-source awards, as it provides some assurance of capability and reliability.

Industry Classification

NAICS: Transportation and Warehousing › Other Transit and Ground Passenger Transportation › All Other Transit and Ground Passenger Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 5TH ST NW, WASHINGTON, DC, 20001

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,260,000

Exercised Options: $24,260,000

Current Obligation: $24,260,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTOS5911D00510

IDV Type: IDC

Timeline